- Description
- A pattern where a firm or a GP has a specific sector or theme focus. While this impacts sourcing, staffing, and many other items, in the area of winning, the pitch is one of expertise, focus, and relevant network. For companies that affiliate with a focused venture fund, the brand can signal the best of the sector for other investors and hires.
- Benefits
- Clear Pitch and Alignment – all your team knows what the pitch is and it can be easier for founders and other investors to remember.
- Specific Value Add – With a more sector-focused strategy, value-add can be more believable and direct. Other portfolio companies may be more relevant or known to the founder and the stories of previously added value may be more understandable.
- Trade-offs
- Markets Change – the sector could become not a good investment area or could be perceived differently. The investment in building relationships in a sector may become less valuable over time.
- Not a Fit – By focusing and building that reputation, the firm or GP will be less likely to win deals outside of that sector.
- Examples
- Forerunner
- Urban US
- Urban Innovation Fund
